The Family Business Senate Program is a forum where the family can come together to discuss business issues that have an impact on the family.

It is important that individuals can keep their personal identity and not become handcuffed to the business. At the same time, family members must know they can have input into business matters and safely voice their opinions. They must know they are respected for who they are and what they can contribute. They must feel confident that they will receive empathy and support as they share their ideas with others.

The Family Business Senate Program includes methodology on developing policies and procedures that determine the criteria for dealing with various circumstances. These policies enable the family to focus on their common interest by having a pre-determined mandate for how issues should be addressed. At the same time, the Family Business Senate program encourages the family to build traditions and celebrations that support the family unit.

The Family Business Senate Program goes a long way to building a strong family unit that can work as a team to look after their heritage for the next 100 years and more. It can help build the traditions and stewardship that are important to the family and ultimately the business. Here are some of the components of the Family Business Senate Program.

• Family Charter
  The Family Charter, or Constitution, as it is sometimes called, sets out the values and principals that are the foundation of the family business. It outlines who the family is and what they stand for. It also maps out where the family want to go over the next 1000 months or so. You could say this is the extra long, long-term objective.

• Family Participation Plan
  The Family Participation Plan contains the criteria for involvement in the family business and addresses such questions as who is eligible to work in the family business, what qualifications are required to work in the business or what are the rights and responsibilities for those involved in the business.

• Personal Development & Mentoring
  The family must also lay down guidelines for continued personal development and appraisal processes for all involved. By incorporating a variety of support and development tactics, family members will feel confident that they will be valued contributors to the family business

• The Family Council
  The Family Council is a forum where the family come together regularly to discuss business issues that impact on the family. The family council meetings are the appropriate venue to define the Family Charter and Participation Plan. It is also a forum where the family can fashion their decision-making processes and conflict management processes.

• Conflict Management Process
  To be successful, a business must continually adapt. It must always be one step ahead of its limiting factors. It must embrace change. However, change can result in conflict. Conflict that arises out of change does not have to be negative. The key is to manage the conflict appropriately.

• Decision-Making Process
  It is important that the family develop procedures for dealing with issues before they arrive. Issues that impact the ownership or management circles will then be moved over to the appropriate decision-making bodies for those areas.

• Family Celebrations, Traditions & Philanthropy
  Another tactic is to encourage the family to spend time together as a family without discussing business. The purpose is to celebrate the individuals who make up the family unit and build traditions that define them as a family--traditions that perhaps uphold their policy around philanthropy or their commitment to their community.

• For example, one family held a celebratory evening to welcome young people into the family on their 18th birthday. Each new 'adult' was given a family ring to recognize the event.

• Another way to come together is by participating in the creation of a Memory Quilt that includes phographic images of key family members, and buildings such as the famly home, factory, office building, store or warehouse and other significant places. Collecting the photos and stories can be very meaningful, especially for famly members not in the Ownership or Management Circles. Visit Karen Hasher Studio to see some examples of Memory Quilts.

Benefits of The Family Business Senate Program

• Family members will have a place to discuss business issues that impact the family. The entire family will benefit from having formality and structure to separate family life from business but still feel connected to the business.

• Engages all family members so they feel a connection to the business (including the in-laws).

• Family members have a place where they can have input and be heard through a Family Business Senate structure, family members will know their opinions are important and that they are respected for who they are and what they can contribute.

• It is important to ensure that everyone has the information they need to play their part. Unfortunately we often make decisions based on what we perceive. It is as if perception is reality, facts are negotiable. The facts need to be put squarely on the table. In other words, it’s important that everyone has the same information in order to make the best decision. Communication will be greatly enhanced because they are dealing with facts rather than perception.

• Fears can be addressed and the family will find it easier to deal with the underlying fears that stop them from moving forward.

• The family can establish processes to deal with specific issues before those issues materialize. There is a huge benefit to being proactive and defining procedures to follow in various scenarios. Rather than wait until an issue arises and causes conflict, the family can, within the Family Business Senate Program, create a policy manual that will cover all eventualities.

• The family can focus on building their heritage and establish their goals for the next 1000 months. All of these benefits go a long way to building a strong family unit that can work as a team to plan for the next 1000 months. How individuals contribute to the business has a huge impact on the overall success of the company.

Contact us today to learn more.